Applying a public policy evaluation methodology for local socio-economic impacts: an exploration in realistic modelling

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Modelling the innovation value chain

Innovation events – the introduction of new products or processes – represent the end of a process of knowledge sourcing and transformation. They also represent the beginning of a process of exploitation which may result in an improvement in the performance of the innovating business. This recursive process of knowledge sourcing, transformation and exploitation comprises the innovation value chain. Modelling the innovation value chain for a large group of manufacturing firms in Ireland and Northern Ireland highlights the drivers of innovation, productivity and firm growth. In terms of knowledge sourcing,we find strong complementarity between horizontal, forwards, backwards, public and internal knowledge sourcing activities. Each of these forms of knowledge sourcing also makes a positive contribution to innovation in both products and processes although public knowledge sources have only an indirect effect on innovation outputs. In the exploitation phase, innovation in both products and processes contribute positively tocompany growth, with product innovation having a short-term ‘disruption’ effect on labour productivity. Modelling the complete innovation value chain highlights the structure and complexity of the process of translating knowledge into business value and emphasises the role of skills, capital investment and firms’ other resources in the value creation process.

Modelling trade offs between public and private conservation policies

To reduce global biodiversity loss, there is an urgent need to determine the most efficient allocation of conservation resources. Recently, there has been a growing trend for many governments to supplement public ownership and management of reserves with incentive programs for conservation on private land. This raises important questions, such as the extent to which private land conservation can improve conservation outcomes, and how it should be mixed with more traditional public land conservation. We address these questions, using a general framework for modelling environmental policies and a case study examining the conservation of endangered native grasslands to the west of Melbourne, Australia. Specifically, we examine three policies that involve i) spending all resources on creating public conservation areas; ii) spending all resources on an ongoing incentive program where private landholders are paid to manage vegetation on their property with 5-year contracts; and iii) splitting resources between these two approaches. The performance of each strategy is quantified with a vegetation condition change model that predicts future changes in grassland quality. Of the policies tested, no one policy was always best and policy performance depended on the objectives of those enacting the policy. Although policies to promote conservation on private land are proposed and implemented in many areas, they are rarely evaluated in terms of their ecological consequences. This work demonstrates a general method for evaluating environmental policies and highlights the utility of a model which combines ecological and socioeconomic processes.

The use of modelling in purchasing/supply management research

The purpose of this research to explore the use of modelling in the field of Purchasing and Supply Management (P/SM). We are particularly interested in identifying the specific areas of P/SM where there are opportunities for the use of modelling based methods. The paper starts with an overview of main types of modelling and also provides a categorisation of the main P/SM research themes. Our research shows that there are many opportunities for using descriptive, predictive and prescriptive modelling approaches in all areas of P/SM research from the ones with a focus on the actual function from a purely operational and execution perspective (e.g. purchasing processes and behaviour) to the ones with a focus on the organisational level from a more strategic perspective (e.g. strategy and policy). We conclude that future P/SM research needs to explore the value of modelling not just at the functional or operational level, but also at the organisation and strategic level respectively. We also acknowledge that while using empirical results to inform and improve models has advantages, there are also drawbacks, which relate to the value, the practical relevance and the generalisability of the modelling based approaches.